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DiNapoli: Spending Down, Debt Highest Ever

While spending has decreased over the last several years, the state’s debt is the highest its ever been, Comptroller Tom DiNapoli’s office found in annual budget report issued today.

The contention the state’s debt has grown too high was pushed back on by the governor’s office, which noted the debt to personal income ratio — an important factor in calculating New York’s debt limit — is its lowest in decades.

Still, New York’s debt has reached an all-time high in 2012-13 fiscal year, hitting $63.5 billion even as state spending has decreased by 0.3 percent or $407 million from the previous fiscal year.

“State policy decisions in the past three years have helped New York better align state spending with revenue, but difficulties remain,” DiNapoli said. “The aim should be to build on the progress made and put New York state on a truly sustainable fiscal path. While short-term financial results appear positive, the fact that we are still dependent on temporary resources means the long-term outlook remains challenging.”

More broadly, state spending has increased since 2009, growing 9.5 percent, faster than the rate of inflation.

New York remains the second-most indebted state after California and is ranked fifth among the states.

Public health and education spendning remain the biggest pieces of the budget pie, 68 percent of total state spending.

Morris Peters, a spokesman for Gov. Andrew Cuomo’s Division of Budget, noted approved budgets has been passed on time and have stayed both within the current debty cap as well as in a self-imposed 2 percent spending limit.

“For the third year in a row we passed an on-time budget that holds spending growth under 2 percent and stays within the debt cap. In every year of the Capital Plan, the debt to personal income ratio has improved, representing the lowest level the State has recorded in decades,” Peters said. “The Governor’s actions to put our fiscal house in order have earned the state a positive outlook from Moody’s and Standard & Poor’s as well as helped create 300,000 private-sector jobs.”

This entry was posted by Nick Reisman on October 15, 2013 at 4:50 pm, and is filed under Comptroller. Follow any responses to this post through RSS 2.0. Both comments and pings are currently closed.

BusterBrown

[The contention the state’s debt has grown too high was refuted by the governor’s office, which noted the debty to person income ratio — an important factor in calculating New York’s debt limit — is its lowest in decades.]

1) For starters, the “the debty to person income ratio” should have read “debt to PERSONAL income ratio.” I’m going to call it “debt as a percent of personal income” which I find clearer.

2) To REFUTE something means to prove it wrong. Unsurprisingly, Cuomo’s mouthpiece has failed to refute anything. Cuomo’s office is merely trying to baffle the press with bullsh*t. Sadly, it often works.

DiNapoli’s two reports were excellent and totally transparent. Look at the more numerical report called “2013cafr.pdf”. The comptroller’s people provide every financial ratio under the sun. That includes debt as a percent of personal income on p.193 in the 2nd to last column of the table called “Ratios of Outstanding Debt by Type.”

It didn’t change much. The ratio was went from 7% in 2003-2004 to 6% in every other year including 2012-2013. 7% to 6%? Big deal. A reasonable person might say that debt as a percent of personal income has been relatively flat over the last decade. HOWEVER…if you’re Cuomo, Bob Megna or their PR guy, you would spin this by saying “debt as a percent of personal income is the lowest it has been in a decade!” Hey, 6% IS lower than 7%.

If you were Cuomo et al, you might even go wild and use the plural “lowest in DECADES.” The key to passing off this kind of baloney is to NEVER provide the data you’re using That cuts down on people taking the time to REFUTE our governor’s gross exaggerations. Jeezus. Cuomo is the king of the bullsh*ters.

3)BTW, are we ever going to see the DETAILS behind Cuomo’s recent estimates of all the money New York will make if we allow casino gambling? Maybe the LCA should ask. I suspect some serious magic wand waving was used to generate those gambling revenue estimates. If New Yorkers simply take the governor at his word, they’ve got a screw loose.

Nick_Reisman

Oops, thanks. Truth be told, I got to this one a bit late in the day and was clearly every brain synapse wasn’t firing.